Sustainability inches itself closer to the center of a company. It is now an imperative rather than a consideration left at the fringes of a business. With climate change, resource scarcity, and growing expectations for more sustainable practices, companies that embrace sustainability are able to fortify their business and improve their environmental and social impact along with their financial viability.
To kickstart this change, commitment at the highest level of corporate governance is a crucial necessity. However, gaining board buy-in for sustainability needs a well-planned approach that aligns sustainability objectives with company goals and responsibilities.
It is important to act now. The climate crisis, along with evolving regulatory landscapes has made sustainability no longer an option that can be overlooked. By framing sustainability as a driver of value and success, businesses can align environmental and social goals with corporate objectives, positioning the company for long-term success in a rapidly changing environment.
Integrating sustainability into the core strategy of a business offers benefits that extend beyond the organization, impacting the environment and affected communities and stakeholders. With sustainability in mind, businesses can see improvements in brand reputation, risk management, and financial performance. The use of clean energy and circular business models can lead to cost savings and lower harm on the environment. Innovating for sustainability can also open businesses to new revenue streams and market opportunities as they create sustainable products and alternatives that may attract customers and investors. Furthermore, as regulations continue to evolve and change, those who equip themselves early with sustainability strategies and talent can adapt and comply quickly when it comes to reporting and communicating their performance.
Despite these clear benefits, convincing leadership to prioritize sustainability can be hindered by many different challenges. Boards that do not look far ahead into the future and prioritize short-term results may overlook the long-term value creation sustainability brings to a business. This short-term focus may also affect risk management as climate change and resource scarcity can heavily impact a business’s performance if no action to future-proof the business is taken.
Sustainability may also appear intimidating and challenging to accomplish. Sustainability strategies and projects can seem like additional costs rather than value-adding long-term investments. It could be perceived as a difficult activity due to its newness and unfamiliarity. Lack of knowledge and expertise may make it difficult to understand the implications of sustainability over a business. It is important to consider these challenges when bringing sustainability into conversations with the board. Proper sustainability communication and education can lead to a smooth transition towards sustainable development.
How does one get the board on board with sustainability? This can be done with a five-step approach.
As mentioned before, sustainability can be a completely new landscape for leaders and the board. Unfamiliarity can be a hindrance and the lack of knowledge can prevent the development of effective strategies that will fulfill a company’s sustainability goals. Thus, it is important to translate sustainability in a way that resonates and relates to overall company goals.
The language of the boardroom is often financial. One way to introduce the value of sustainability is by presenting these initiatives as opportunities for cost savings, risk reduction, or revenue growth. For example, energy efficiency measures can reduce operational costs, while circular economy models can create new product lines and reduce waste. Case studies and data demonstrate how competitors or industry leaders have turned sustainability into a competitive advantage. Targeted material and sessions or external experts provide insights on emerging trends and regulatory requirements. By connecting sustainability with financial performance, the unfamiliarity begins to wane and wax into an imperative.
To create enduring change, sustainability must align with the company’s overarching purpose. This involves reshaping the organization’s mission and values to reflect its commitment to environmental and social goals. When sustainability is integral to corporate identity, it resonates more deeply with all stakeholders, from investors and employees to customers and communities.
This reframing shifts the focus from profit maximization to creating shared value—delivering benefits for society and the planet while maintaining financial success. Aligning sustainability and purpose makes sustainability not just a boardroom priority but a rallying point for the entire organization.
Building and structuring sustainability in a company begins with proper sustainability governance and leaders committed to this new cause. Sustainability governance should include a dedicated sustainability committee that can oversee strategy implementation, review performance data, and ensure compliance with regulatory requirements. Its existence signals the board's commitment to sustainability and keeps the issue front and center.
Sustainability champions at the executive level also play a crucial role in engaging everyone in the company from the board to operational teams. Chief Sustainability Officers or other senior leaders are bridges between teams and the board, ensuring that sustainability is framed as a core business issue. CEOs should also take an active role in signaling the importance of sustainability through public commitments, such as initiatives like the UN Global Compact or the Science-Based Targets initiative.
With leadership now on board, it is time to execute initiatives. Starting with pilot projects that lead to quick wins can build confidence in sustainability initiatives. For example, a waste reduction program in one facility can serve as a proof before scaling to other operations. Once there are tangible results, higher-ups may be more open to broader commitments, such as net-zero or zero waste targets.
Developing strategies and executing them are just one part of the entire sustainability journey. It is important to measure and report performance in order to promote transparency and accountability while simultaneously communicating the company’s new commitments and sustainability-driven purpose. Having key performance indicators for material issues can help teams better manage their performance and data. With leadership also responsible for sustainability performance, tying these metrics together with rewards and incentives can boost morale and motivate the entire organization to apply sustainability into their day-to-day activities.
Boards should also actively communicate their sustainability commitments to stakeholders. A bold vision—for example, achieving net-zero emissions by a specified date or eliminating all waste to landfill—can galvanize support and differentiate the company in the market. As new sustainability champions, upholding transparency in communicating progress toward these goals builds credibility and inspires trust. Additionally, stakeholders like investors and consumers can influence board priorities and help shape a clearer vision for a better and more sustainable business. Employee advocacy, especially from younger generations, can also create internal momentum and steer the organization closer to its sustainability goals.
Aligning sustainability with purpose, establishing projects, and communicating results are ways to show corporate governance the importance of sustainability in a business yet there are still more ways to drive cultural change. Boards that fail to prioritize sustainability risk exposing their companies to obsolescence. Enhancing sustainability initiatives and improving current projects can further future-proof a business, serving as a lens which enables action and adaptation to emerging challenges and trends.
Sustainability challenges spur innovation. Consumers are now seeking for sustainable alternatives. Governments are intensifying regulations on sustainability issues. These build pressure to innovate and improve. Boards that anticipate and respond to these challenges can put the organization further ahead of the curve and turn these challenges into opportunities and competitive advantages.
Getting the board on board with sustainability is more than an operational shift—it represents a cultural transformation. It requires rethinking on how to measure, make, and assess decisions, risks, and successes. Boards have a critical role in guiding this change, ensuring that sustainability is not a siloed initiative but a core part of the company’s DNA.
As stewards and champions of long-term value, boards are uniquely positioned to lead organizations toward a more sustainable future. By aligning sustainability with financial performance, establishing robust governance, and fostering innovation, they can secure success in an era where doing good and doing well reinforce the heart and spirit of a business.
At Keslio, we are deeply passionate about sustainability, equipping us with the expertise and extensive network needed to guide clients through their sustainability journey effectively and efficiently. Our expertise is particularly valuable for companies looking to embed sustainability practices into their businesses and investors looking to integrate ESG and impact into investment portfolios. To learn more about how Keslio can assist your organization in its sustainability journey, reach out to us here or through hello@keslio.com
